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The capital market was spooked after the Reserve Bank of India emphasised its concern over high inflation on Wednesday. The benchmark index Sensex plunged over 180 points, but recovered marginally nearing the closing session.
Sensex ended down 84 points at 21,171. It opened on a bearish note at 21,191 and dipped to the day’s low of 21,069 and a high of 21,216. The total turnover on the BSE was down 20 per cent at Rs 1,739 crore against Rs 2,186 crore registered on Tuesday.
On the NSE, the Nifty was down 25 points at 6,308.
Speaking at the Delhi Economic Conclave organised by the Finance Ministry, Raghuram Rajan, RBI Governor, said the central bank's efforts is firmly on controlling inflation and added growth seems to be stabilising, although it was too early to call a bottom.
Rajan wanted the Government to continue its efforts to contain the fiscal deficit and said raising subsidised diesel prices to market levels would help.
Nidhi Saraswat-Senior Research Analyst, Bonanza Portfolio, said apart from weak global cues, investors were holding back their investments ahead of the inflation and IIP numbers to be released this week.
Hero MotoCorp dropped 2 per cent after the company announced that it has subscribed to 17.49 lakh equity shares of HMC MM Auto at par, constituting around 60 per cent shareholding in the joint venture company.
HMC MM Auto has been incorporated as a joint venture between Hero MotoCorp and Magneti Marelli S.p.A. The joint venture was formed to sell, distribute and market complete two-wheeler fuel injection systems or components parts thereof, said Hero MotoCorp.
Some of the Sensex stocks that closed lower today include Tata Motors (-3%), State Bank of India (-3%) and Tata Power (-2%). Most metal stocks edged lower on profit booking after recent gains.
Among losers were Sail (-2%), JSW Steel (-1%), Tata Steel (-1%), Hindalco Industries (-1%), Hindustan Zinc (-2%), Hindustan Copper (-1%) and National Aluminum Company (-1%). Sesa Sterlite rose 0.10%, with the stock reversing intraday losses.
HCL Technologies rose to a record high of Rs 1,180, but closed at Rs 1,175.80, up 2% over previous close.
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